Quick Journal Entries
Neptune City opened a landfill that it elects to account for in an enterprise fund. At the time the landfill was opened the government estimated the total capacity of the landfill to be 6 million cubic feet, useful life to be 30 years, and total closure and post-closure costs to be $20 million. Required: Prepare journal entries in the enterprise fund to record the following events. a) At the end of Year 1, the government re-estimated total closure costs to be $20.5 million and the landfill capacity to be same as the original estimate. During Year 1, the city estimates that 500,000 cubic feet of capacity were used. Record the landfill expense. b) At the end of Year 2, the government re-estimated total capacity to be 5.8 million cubic feet and total closure costs to be $20.8 million. During Year 2, the city estimates that 800,000 cubic feet of capacity were used. Record the landfill expense. c) At the end of Year 3, the government re-estimated useful life to be 27 years but capacity remained unchanged from the preceding year and closure and post-closure costs were estimated to be $22 million. During Year 3 the city installed equipment at a cost of $130,000. The equipment will be used in monitoring the landfill when it is closed. d) During Year 3 the city estimates that 900,000 cubic feet of capacity were used. Record the landfill expense. Please carry all Percentages to 5 Decimal Points
